General Motors Economist Says ‘Brexit’ Has No Impact On U.S. Operations

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The world is recovering from the news of Britain’s exit from the European Union, following a very close referendum vote last week. Since then, automakers have begun assessing what the news means for their operations in one of Europe’s largest economies. Vauxhall itself has stated it was disappointed in the news to leave the single market.

However, General Motors economist, Mustafa Mohatarem, has stated Britain’s exit from the EU will have little affect on the automaker’s U.S. operations. In fact, he believes there’s an underlying positive, according to Reuters.

Forecasts were calling for the U.S. Federal Reserve to hike interest rates higher due to improving economic conditions, but with the most recent global turbulance being “Brexit”, rates are now forecasted to stay very low.

“If the U.K. had stayed in the EU, the thinking was that a rate hike would come in July or September,” Mohatarem said.

GM isn’t panicked, either. He stated the automaker will be waiting for the dust to settle before it makes any changes to its operations.

“How can you asses the impact of something if the rules are not yet set?” he said referring to the lack of certainty around how Britain will exit the European Union.

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— Sean Szymkowski

Sean is a lead staff writer for GM Authority. The words above are fueled by passion and large amounts of caffeine. Find him on Instagram: @helloimseann